Question

On February 1, 2011, Willmar Corporation borrowed $100,000 from its
bank by signing a 12 percent, 15-year note payable. The note calls
for 180 monthly payments of $1,460. Each payment includes an
interest and a principal component.

a.

Compute the interest expense in February. (Omit the "$" sign in
your response.)

Interest expense

$

b.

Compute the portion of Willmar's March 31, 2011, $1,460 payment
that will be applied to the principal of the note. (Round intermediate
calculations and your final answer to the nearest dollar amount.
Omit the "$" sign in your response.)

Principal

$

c.

Compute the carrying value of the note on April 30, 2011 (round to
the nearest dollar). (Round intermediate
calculations and your final answer to the nearest dollar amount.
Omit the "$" sign in your response.)